Honda may delay U.S. diesel car launch

TORRANCE, Calif., Dec. 8 (UPI) -- Honda Motor said it is considering a delay in introducing diesel-powered vehicles to the U.S. market due to the relatively high cost of diesel fuel.

"Right now we are re-evaluating, due to trends in gasoline and diesel prices, and the price of raw materials we use in the exhaust cleanup system," Honda spokesman David Iida told USA Today.

The the price of diesel fuel is now 40 percent to 50 percent higher than the price of regular gasoline, the newspaper reported.

On balance, diesel-powered vehicles cost $1,500 more than comparable gasoline-powered models and get between 20 percent and 40 percent better mileage, the newspaper said.

Honda had said it would introduce a four-cylinder diesel sedan to compliment its Acura luxury brand and move from there to diesel SUVs and vans with V-6 engines.

Nissan spokesman Scott Vazin said Nissan would push ahead with a V-6 Maxima sedan, set for launch in 2010.

"We don't know where (fuel prices) will be when we launch, but we expect some pent-up demand," he said.